QUICK NEWS, 9-7: LEAKED STUDY PREDICTS PEAK OIL; AN OFFER NEW ENERGY SHOULD REFUSE; ENERGY MEGA-GIANT BUYS WIND; CALIF UTILS GET ‘GO’ ON BIG SUN

LEAKED STUDY PREDICTS PEAK OIL
Leaked Study on Peak Oil Warns of Severe Global Energy Crisis
Robert Rapier, September 2, 2010 (R-Squared)

"…[A] study on peak oil by a German military think tank was leaked [in German] on the Internet. The document shows that the German government is closely studying the issue of peak oil, and is aware of the potential for serious consequences as oil production declines. The study is reminiscent of the Hirsch Report, commissioned by the U.S. Department of Energy, that warned of the risks posed by peak oil.

"The document warns of the potential for regional shortages, market failures, and a shift in political power toward those capable of exporting oil. This report describes potential outcomes that require planning and preparation. The scenarios outlined in the paper are exactly the kinds of drivers that lead me to advocate for greater regional energy self-sufficiency. The report clearly lays out just how vulnerable Europe will be because of its continuing dependence upon Russia for both oil and gas, and notes that Russia will be in a very strong political bargaining position…"

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"The report [roughly translated and summarized] sees significant risks arising from an unavoidable peak in oil production, which go beyond gradual shifts in energy systems and economies. This will likely lead to economic change and new geopolitical risks that affect much more than just what we can anticipate. The overall ability to describe exact outcomes is very limited, as many scenarios are possible, and further research is required.

"Overall, more emphasis needs to be put on understanding and shaping international relationships in respect to energy security, anticipating and integrating the ongoing shift to different players in a resource-constrained world…In any case, Germany has to identify and implement alternatives to the current transportation technologies that require oil, and put a similar emphasis on avoiding other dependencies, for example concerning rare earths."

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"For armed forces, Peak Oil creates significant risks, both from a mobility standpoint as well as from dependencies on other societal services. Understanding those risks requires further analysis and likely a very different approach in the future.

"In general, more preparation is required for society and army to make sure that problems are recognized and solutions are actively implemented."


AN OFFER NEW ENERGY SHOULD REFUSE
Mafia cash in on lucrative EU wind farm handouts - especially in Sicily; An ill wind is blowing over Italy's green revolution, as the Mafia seek to capitalise on generous grants for renewable energy.
Nick Squires, 5 September 2010 (UK Telegraph)

"…Attracted by the prospect of generous grants designed to boost the use of alternative energies, the so-called "eco Mafia" has begun fraudulently creaming off millions of euros from both the Italian government and the European Union…And nowhere has the industry's reputation become more tarnished than Sicily, where windmills now dot the horizon in Mafia strongholds like Corleone, the town better known as the setting for the Godfather films…

"It is not just Italian criminals, however, who have spotted the potential for corruption. Recent research by Kroll, the international corporate security firm, has discovered examples all over Europe of so-called "clean energy" schemes being used to to line criminals' pockets…Some involve windmills that stand derelict or are simply never built, while others are used to launder profits from other crime enterprises…"

From zbencz2 via YouTube

"The level of fraud has prompted calls for tighter restrictions on the use of public money in funding renewable energy, for which EU bureaucrats have grand ambitions…[The EU has a 20% New Energy by 2020 standard] and in recent years has given out an average of €5 billion (£4.1 billion) annually in loans and grants…[P]ower from wind farms [in Italy] is sold at a guaranteed rate of €180 per kwh – the highest rate in the world. In a country where the Mafia has years of expertise at buying corrupt politicians and intimidating rivals, the result is perhaps inevitable, creating a new breed of entrepreneur known as the "lords of the wind".

"Around 30 wind farms have been built in Sicily, with another 60 planned…While many of the wind farms in Sicily are in legitimate hands, some have already attracted the attention of the police. Last year, detectives launched a major investigation into suspicions that Mafia clans had colluded with corrupt businessmen and local politicians to secure control of a project to construct wind turbines in the Trapani area of western Sicily…Eight people were arrested in Operation "Eolo", named after Aeolus, the ancient Greek god of winds, on charges of bribing officials…"

These things happen when there is no more legitimate and effective authority. (click to enlarge)

"In another operation last November, codenamed "Gone With the Wind", 15 people were arrested on suspicion of trying to embezzle up to €30 million in EU funds. Among those arrested on fraud charges was the president of Italy's National Wind Energy Association, Oreste Vigorito. He has not been convictued of an offence and denies any wrongdoing…[S]candals have emerged in Spain, Romania, Bulgaria and Corsica, among others. In one alleged scam on the Canary Islands, a mayor, five officials and two developers are fighting criminal charges…One case in Spain, meanwhile, involved a solar energy plant which claimed, miraculously, to be generating electricity at night. Investigators found that that the power was in fact being produced by diesel generators - the "green" subsidies paid for the plant were so generous that the owners still made a handsome profit…[W]ind farms are also attractive to criminals seeking to invest money from illegal activities…

"Despite the scandals over Mafia infiltration, there have been very few protests against wind farms in Italy. Instead, farmers have leapt at the chance to rent out their land for wind farm construction at a time when the price of agricultural produce such as grapes and tomatoes has plummeted…But David Moss, a British building contractor based in the Sicilian hilltop town of Salemi, which is surrounded by whirring turbines, suggested that was not the only reason for the absence of wind-farm 'Nimbyism'… 'In Italy, everyone keeps quiet because they are afraid to stand up to the Mafia.'"


ENERGY MEGA-GIANT BUYS WIND
A Nuclear Giant Moves Into Wind
Matthew L. Wald, August 31, 2010 (NY Times)

"Exelon, the nuclear giant that recently backed away from building new nuclear plants, is moving into wind…[by] buying John Deere Renewables, which has 735 megawatts in operation and 230 megawatts in ‘advanced stages of development’ in Michigan. The price was $860 million, plus $40 million if ground is broken on the Michigan projects.

"In March, Exelon withdrew its application for a construction and operating license for a twin-unit nuclear plant in Victoria County, Tex., citing lower projections for electric demand because of the recession…[and] asked the Nuclear Regulatory Commission for preapproval of the site, which would speed up the approval process if it decided later that it wanted to build. But the decision left the country’s largest nuclear operator without a direct role in what the nuclear industry hopes is a renaissance."

Maybe Exelon realized nuclear energy is prohibitively expensive. (click to enlarge)

"…[Exelon] says it is sticking by its commitment two years ago to cut its carbon dioxide output in 2020 by 15 million metric tons of carbon dioxide or its equivalent in other greenhouse gases. That would be more than its total emissions in 2001, the company said."

Maybe Exelon realized nuclear energy isn't the solution to climate change-inducing emissions. (click to enlarge)

"The [wind] purchase will instantly make Exelon one of the nation’s largest wind operators…John Rowe, the chief executive, …has been urging Congress to pass climate change legislation…The prospects for that legislation are unclear, and the Environmental Protection Agency may simply order carbon emission reductions…"

[John Rowe, CEO, Exelon:] “Whether harmful emissions are priced or regulated, our combined capacity of nearly 19,000 megawatts of zero-emission wind, solar, hydro, landfill gas and nuclear power remains a clear competitive advantage that will only become more valuable.”


CALIF UTILS GET ‘GO’ ON BIG SUN
California Utilities Approved for 616 Megawatts of Solar Deals
Andrew Herndon, September 2, 2010 (Bloomberg News)

"Southern California Edison Co. and Pacific Gas & Electric Co. received approval from California regulators…for a combined 616 megawatts of solar power purchase agreements.

"Southern California Edison, a unit of Edison International, was approved for two 20-year contracts for the output from 250- megawatt and 300-megawatt thin-film photovoltaic projects proposed by First Solar Inc. in Desert Center and San Bernardino. The projects, named Desert Sunlight and Desert Stateline, are to begin delivering power in 2015…[and the] cost to customers won’t exceed a market price benchmark used to approximate the cost of new fossil-fueled generation during the same period, the [California Public Utilities Commission (CPUC)] said."

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"Pacific Gas & Electric, a unit of PG&E Corp., was approved for a 20-year contract to buy the output from NRG Energy Inc.’s 66-megawatt Alpine Suntower project proposed in Riverside County, California. Power deliveries are expected to begin in 2013…NRG originally intended to develop a 92-megawatt project using ESolar’s solar-thermal technology. In May, …NRG chose to reduce the size the project and use conventional photovoltaic panels.

"The contracts will help the two utilities meet obligations under California’s renewable portfolio standard, or RPS, which requires 20 percent of the energy they provide to come from renewable sources by the end of 2010."

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"PG&E and Southern California Edison served 14.4 percent and 17.4 percent of their 2009 load with renewable energy, respectively, according to [the CPUC July 1 RPS Quarterly Report…

"Sempra Energy’s San Diego Gas & Electric Co., another large California utility, supplied 10.5 percent of its power from renewable resources in 2009, according to the report."